Multiple Choice
The demand for money rises.According to the Keynesian transmission mechanism,the interest rate __________,investment spending __________ (assuming it is interest-sensitive) ,the AD curve shifts to the __________ and if the AS curve is horizontal,Real GDP __________.
A) rises; falls; left; rises
B) falls; rises; right; does not change
C) rises; falls; right; rises
D) falls; falls; left; does not change
E) rises; falls; left; falls
Correct Answer:
Verified
Correct Answer:
Verified
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